For a perfectly competitive firm, suppose that all fixed cost is sunk and total fixedcost is 100 and average variable cost is 5+0.05q. Market price is $15. Find the profiaof each individual firm.$700$600$500$400

Sunk cost refers to the cost that cannot be covered. Total cost is the sum of Fixed and variable…

For a perfectly competitive firm, suppose that all fixed cost is sunk and total fixer cost is 100 and average variable cost is 5+0.05q. Market price is $15. Find the pr of each individual firm. $700 $600 $500 $400

For a perfectly competitive firm, suppose that all fixed cost is sunk and total fixer cost is 100 and average variable cost is 5+0.05q. Market price is $15. Find the pr of each individual firm. $700 $600 $500 $400

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 17SQ

See similar textbooks

Related questions

Q: or a perfectly competitive firm in the long run, price is Greater than long-run marginal revenue…

A: In a perfectly competitive market, price is determined by the market forces.

Q: A perfectly competitive firm has the following total cost function: Total Output (Units) Total…

A: In a perfectly competitive firm there are large number of firms producing identical products thus…

Q: Total cost function of a perfect competitive firm is: TC = Q² + Q +225 a. At P = 35$, calculate Q*…

A: In perfect competition there are many firms producing identical goods. This makes firms price takers

Q: $20 ATC 15 10 Q 80 10 20 30 40 50 60 70 1. Refer to the diagram attached showing the average total…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Darlene runs a pizza parlor in a medium-sized community where there are many such parlors. Assuming…

A: Fixed costs (FC) are costs incurred during production that are not dependent on the quantity of the…

Q: Suppose that price is below the minimum average total cost (ATC) but above the minimum average…

A: In perfect competition, every seller in the market would be a price taker. A perfectly competitive…

Q: If a firm shuts down, it A) makes zero economic profit. B) incurs an economic loss equal to its…

A: Total cost is the sum of variable cost and the fixed cost. Fixed cost is the cost that remains same…

Q: Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units,…

A: The perfect competition is the market structure with large number of buyers and sellers, selling…

Q: Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs…

A: Accounting profit likewise alluded to as accounting profit or monetary profit is overall gain…

Q: If a perfectly competitive firm is producing an output level where average variable cost is equal to…

A: "A profit maximizing firm in a perfectly competitive market will maximize profits at a point where…

Q: A perfectly competitive firm currently sells each unit of output at $3 and faces an average total…

A: In a market, a perfectly competitive firm is one that has to accept the market price and sell all…

Q: Assume quantities need not be integers. A firm in a perfectly competitive market with MC(q) = 2 +…

A: A perfect competitive firm has Marginal cost equals to Price. MR = P Profit maximizing quantity is…

Q: A profit-maximizing firm in a perfectly competitive market continues to operate even though it is…

A: The market structure in which there are many firms who sell an exactly same product in the market is…

Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…

A: The rise or decrease in the cost of producing one more item or serving one more client is referred…

Q: The demand curve of a firm is p=1200–21q and its total cost is C(q) = 2q° – 66q² +600q+1000 where q…

A: Given that, The demand curve of a firm is P = 1200 - 21q Total cost is C(q) = 2q3- 66q2+600q…

Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost s10 16 2 20 3 22…

A: MC= TC2-TC1/Q2-Q1

Q: In the short run, TVC * is positive when output is zero. increases with increasing output.…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost…

A: QD= 140000 - 10000P Qs= 80000 + 5000P Lowest point of average cost curve in long run $4. Quantity of…

Q: The key characteristic which prevents firms in a perfectly competitive industry from earning…

A: In perfect competition there are large number of buyers and sellers selling homogeneous goods which…

Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost $10 16 20 3 22 24…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average…

A: Introduction: Short-run is a term that asserts that at least one input is fixed while others are…

Q: The table below gives the short run total cost function for a typical firm in a perfectly…

Q: A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and…

A: Question: A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are…

Q: Suppose you start a business of manufacturing computer software. Assume that this computer software…

A: In the short-run, a business unit assesses its total revenue against total variable cost due to sunk…

Q: Table) Based on the table, what is the average total product when John's Salsa Company hires three…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In a perfectly competitive industry the market price is P12. A firm is currently producing 50 units…

A: Perfectly competitive market: It is a market structure in which there operates a large number of…

Q: Differentiate between the following Implicit and explicit cost. Market shortage and market surplus…

A: The given topics in the question are some of the important concepts of Economics that help in…

Q: The figure below depicts the short-run market equilibrlum In a perfectly competitive market and the…

A: Perfect competition market is such market where there are very large number of buyers and sellers…

Q: Q5. Typical perfectly competitive firm with Total Cost Function TC = 200 + 25Q - 6Q + (1/3)Q', faces…

A: As given TC = 200+ 25Q -6Q2 +(1/3)Q3 Price = $70

Q: T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling…

A: Perfect competition refers to the market where firm has no opportunity to change the market price…

Q: In the long run, you are given the following: The total revenue curve is TR= -4Q^2 + 28Q +235. The…

A: Given: TR = -4Q2 + 28Q + 235 AVC = 4Q - 36 + 100/Q

Q: Which of the characteristics of perfect competition assures that economic profit will be zero in the…

A: The market is the collection of buyers and sellers. It is the system in which the transaction of…

Q: A perfectly competitive firm is in the following situation: output = 6000 units; market price = $2;…

Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…

A: Given Quantity Total Cost 0 12 1 14 2 18 3 24 4 32 5 42 6 54 7 68 Market…

Q: For a perfectly competitive firm, suppose that all fixed cost is sunk and total fixed cost is 100…

A: Marginal cost gives firm's short run supply in perfect competition. Firms maximize profit by selling…

Q: Mr DIY is a new small scale palm oil supplier. There are many small scale palm oil suppliers in the…

A: Creation of palm oil that conforms to willful maintainability guidelines is developing at a quicker…

Q: For the perfectly competitive firm, economic profit equals: (price minus average total cost) times…

A: In a perfectly competitive market, there are huge numbers of buyers and sellers trading the…

Q: A perfectly competitive, profit maximizing firm is producing a quantity such that AVC < MC < ATC. We…

A: A Perfectly Competitive, profit maximizing firm is producing the quantity such that…

Q: The perfectly competitive firm has the following cost function: Total output Total cost 0 20 1 30 2…

A: Perfect competition is the ideal market structure in which all producers and consumers have complete…

Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…

A: SRTC = 8 + (1/2)q2 MC = dSRTC / dq => MC = q ------------ SRTC = 8 + (1/2)q2 => ATC = SRTC / q…

Q: If a perfectly competitive firm sells 50 units of its product for $8 each and has an average cost of…

A: Output sold = 50 units Price = 8 AC = 2 per unit

Q: draw marginal cost, marginal revenue, and average total cost curves for a typical perfectly…

A: In a perfectly competitive industry, there is a large number of buyers and sellers. Firms sell…

Q: In a perfectly competitive and constant cost industry, all firms are identical. If the market demand…

A: Given Information Market demand : QD = 600−PFirm cost: TC = q3 − 20q2 + 120q

Q: In perfect competition, marginal revenue Group of answer choices increases as more is sold.…

A: Perfect Competition: It is the market situation where a large number of buyer and seller exists.…

Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…

A: SRTC = 8 +0.5q2 and MC = q TC = FC + VC Here from the total cost we can separate fixed cost and…

Q: A constant-cost industry is distinguished by the fact that firms&#39; short-run average total…

A: Constant cost industry is the industry in which proportion of increase in the cost of product is…

Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…

A: Given, SRTC equation = 8 + ½q2 SRTC is the total cost which comprises fixed cost and variable cost.…

Q: Suppose the firm faces a price of $44, an average variable cost of $34, and has an average fixed…

A: Solution:- Option B- can cover all its costs. and option C- and will have a profit per unit of $5.

Q: Suppose you start a business of manufacturing computer software. Assume that this computer software…

A: Given the fixed cost per month = 80,000 Total cost = 140000 Quantity of software = 1000 Average…

Question

For a perfectly competitive firm, suppose that all fixed cost is sunk and total fixed
cost is 100 and average variable cost is 5+0.05q. Market price is $15. Find the profia
of each individual firm.
$700
$600
$500
$400

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If a perfectly competitive firm sells 50 units of its product for $8 each and has an average cost of $2 a unit its marginal revenue is ____________ its total revenue is ___________ and its total cost is _______________.
Cardboard boxes are produced in a perfectly competitive market. Each identical firm has a short-run total cost curve of TC = 4Q3 – 10Q2 + 40Q + 50 where quantity is measured in thousands of boxes per week. The marginal cost of production is given by MC = 12Q2 – 20Q + 40. Calculate the price below which a firm in the market will not produce any output (the shut-down price) in short run.
Don't use chatgpt, I will 5 upvotes Refer to Figure 14-1. If the market price is P2, in the short run, the perfectly competitive firm will earn ◻ positive economic profits. negative economic profits but will try to remain open. zero economic profits. negative economic profits and will shut down.
The table below gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 If the firm enjoys market power than the firm’s market price will be higher or lower than the competitive market price? Why?
For a firm in a perfectly competitive market Marginal Cost is MC = 5+0.5Q. Total Cost at a quantity of 0 is $100. Based on this information at a quantity of 8 Average Total Cost is...
For a perfectly competitive firm operating in the short run, in order to maximize profits it should produce output where: a. marginal cost equals average variable cost. b. marginal cost equals average total cost. c. total cost equals total revenue. d. marginal cost equals price.
Suppose a firm in a perfectly competitive industry is currently producing output at its profit-maximizing quantity. If the firm's marginal cost is less than its average total cost, MC < ATC, the firm will earn ________ profits. a.negative b.positive c.zero d.break-even